Blog

Regulation

By Rukayat Moisemhe

Lagos, June 20, 2024 (NAN) Experts have called for the adoption of good regulatory governance principles to tackle the implications of overlapping regulatory functions on business operations and the manufacturing sector.

They made the call at the Manufacturers Association of Nigeria (MAN) Ikeja branch 2024 Chief Executive Officers (CEOS) breakfast meeting on Thursday in Lagos.

The News Agency of Nigeria NAN reports that the meeting had as its theme: “Harmonising Regulatory Compliance: The Impact of Overlapping Regulatory Function on Business Operations”.

Dr Muda Yusuf, Founder, Centre for the Promotion of Private Enterprises(CPPE), said the call was particularly important as this was not the best of times for manufacturers and investors in the economy.

Yusuf stated that regulatory risk was one of the biggest risks that businesses had to cope with in the Nigerian economy.

This, he noted, could manifest as overlapping regulatory regimes, too many regulations, sporadic and frequent regulatory changes and absence of dispute resolution mechanism between businesses and the regulators.

“There are several cases of overlapping regulatory functions creating challenges for manufacturers and its impact is with respect to cost, irritation and distraction of having to attend to numerous agencies of government.

“Because manufacturing business is long term, regulatory risk is a major source of worry for manufacturers as manufacturers do not have the luxury of switching easily from one product line to another.

“Hence, the need for regulatory risk needs to be kept to the barest minimum,” he said.

The CPPE boss also stressed the urgent need to harmonise the applicable exchange rate for the computation of import duty.

He said the import prohibition  of 41 items by the former Central Bank of Nigeria (CBN), Godwin Emefiele, was a classic case of overlapping and conflicting functions of the CBN and fiscal authorities on trade.

Yusuf noted that while the policy lasted, it created a lot of confusion in the international trade ecosystem as items that were on the CBN import prohibition list were not on the fiscal policy prohibition list.

He stressed that the regulator’s purpose and regulatory objectives should be clearly defined and communicated to the regulator, the regulated, and the general public.

“Governance arrangements for regulators should promote efficiency, effectiveness and integrity.

“Stakeholders should be able to predict, with a high degree of confidence, what decision a regulator is likely to make in particular circumstances.

“Regulators should engage systematically with stakeholders through transparent, formal mechanisms that guard against “regulatory capture” by one or more stakeholders.

“Also, regulators should be accountable to the government and parliament, the regulated entities, and the general public for their decisions and use of resources,” he said.

President, MAN, Otunba Francis Meshioye, said that while regulations were essential for safety and quality, the overlapping and sometimes contradictory regulations increased operational costs and ultimately hindered business growth.

He noted that Nigeria’s regulatory landscape was characterised by a multitude of agencies, each with its own set of rules and requirements.

Meshioye said that though the intention behind these regulations was often to protect the public interest, ensure compliance, and promote industrial standards, the lack of coordination and harmonisation among regulatory bodies created bottlenecks to businesses.

“These bottlenecks have adverse effects such as operational inefficiencies, increased compliance costs, delayed production, uncertainty and risks.

“It is pertinent to note that the need for harmonisation of regulations is not about reducing standards or compromising on safety and quality but about creating a more coherent, predictable, and business-friendly regulatory environment,” he said.

Elder Robert Ugbaja, Chairman, MAN Ikeja Branch, underscored the importance of collaborative efforts in addressing regulatory challenges and driving positive change.

Ugbaja called for the development of practical strategies that promote regulatory harmonisation that had the potential to unlock the full capacities of Nigerian businesses and industries.(NAN)(www.nannews.ng)

ARM/AWA
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Edited by Olawunmi Ashafa

Project
By Aish Cole
Lagos, June 20, 2024 (NAN) Capt. Tajudeen Alao, President of the Nigerian Association of Master Mariners says the Federal Government’s Trade Modernisation Project (TMP) will stimulate quicker cargo clearance at the nation’s ports.

Alao made the observation in Lagos on Thursday, noting that the establishment of the project would also boost Internally Generated Revenue and enhance the country’s global visibility.

He observed that the world had moved beyond conventional methods of doing business with the advancement of technology.

He said: “More than 30 years ago, when Singapore grew from a third-world country to a first-world country, the President, Mr Lee Kuan Yew, led the drive for technology awareness, and now look at where Singapore is today in terms of technology.

“So, Nigeria must make more efforts to keep abreast with technological advancements worldwide.

“The establishment of the Trade Modernisation Project would add value in terms of Internally Generated Revenue through improved customs clearance procedures.

“Consider the time when we had to carry files around; now everything is done through ICT. Nigeria must modernise, and I am glad this initiative is underway”.

The master mariner emphasised that without trade, growth is impossible and that creating an atmosphere conducive for trade “is essential to reap its benefits”.

Alao assured Nigerians of the tremendous benefits that would follow the establishment of the Trade Modernisation Project, adding that master mariners were upgrading themselves globally to remain relevant in the maritime industry.

He stated that the TMP would enable Nigeria to become a shipping hub for west and central Africa.

Alao commended terminal operators for upgrading the access corridors at the port and urged them to enhance other facilities to reduce business processing time.

The General Manager of the Trade Facilitation Project, Mr Ahmed Ogunshola, explained the numerous benefits accrued to a nation when the Customs Modernisation Project (CMP) is fully automated.

NAN reports that the Federal Government and Trade Modernisation Project Ltd. signed a 20-year Concession Agreement on May 30, 2022, to provide best-in-class technology for the implementation of paperless customs at the Nigeria Customs operations.

Ogunshola explained that TMP was the automation of the business processes of the Nigeria Customs Service.

He said that the project would simplify and enhance the experience of stakeholders in the trade value chain, making it easy to obtain import and export clearances, pay duties, and obtain the release of goods.

Ogunshola said that the major advantage of the project was the significant growth in the revenue profile of the federal government.

“The project will generate more than 250 billion dollars for the Federal Government over the life of the concession.

“The project will bring Nigeria to par with the rest of the world, in terms of deploying technology to facilitate international trade.

“The TMP project will give the economic diversification agenda of the Federal Government a huge boost by providing further ease of cross-border trading.

“By the time the project is fully implemented, it will cover all areas of customs activities, including duties collection, clearance operations and suppression of smuggling,” Ogunshola said.(NAN)(www.nannews.ng)
AIC/AWA
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Edited by Olawunmi Ashafa